Need a Real Estate Agent (agents, department, listings, sellers)

[westsideboy]

For the record, I am not the one that gave you the neg. If you want to do the work to sell your place yourself to save 3%, more power to you. To deny the 3% to the buyers agent is not sticking it to the real estate world. The buyer's agent will get their cut either way. You are sticking it to the buyer. It essentially raises the price of your house 3%. List at 300,000 with no money for the buyers agent and your price to the buyer is actually 309,000. so will you drop your asking price to 291,000 to compensate, or will do you just think your place is so great that overpricing it won't matter? It is all a moot point if you are not actually selling your place, but many of us (myself included) are struggling to sell in this tough market and are very happy that we have a good agent to do all of the time consuming leg work for us.

[kaos60]

I am a real estate agent and I will give you an option to think about. But first I need to know If you are going to buy another house. Till you answer that question here is something to consider..
3% commission: $300.000 - $9.000 = $291.000 you will get your house listed with a discount broker. They will not be honest and realistic about market trends as far as the average buyer commission. They will tell you that they will keep the 1.75 % and offer the rest to the buyer agent and you will be responsible for any additional compensation.
on this option
1.even If you decide to get the buyer agent compensation to 2 % level, and even though agents are supposed to show houses at 2% commission..ethically..you will reduce your chances of getting your house sold based on number of buyer agents looking at the percentage and saying neeeeh..

option 2:
5 % commission:
both buyer and seller agent gets 2.5 %
$300.000 - 15000 = $285.000
you get a listing and a company that is happy to work for you, goes the extra mile and no matter what it takes, does not care how many hours he/she has to work explaining/reporting things to you, takes the time necessary.

by finding someone at less than 5% you are finding an agent who gave up on their commission for the sake of making quick bucks????They will have the same mindset when it comes to negotiations with bidders..Keep that in mind.
I still would like to know If you will buy a house after selling this one, because things a bit change if you will.

For now my advice is $9000 vs. 15000
For $6000 you will be in a better position dealing with hard working agents who are not in the business for hit and run quick bucks..who are dedicated, not trying to close deals left an right but closing them client satisfaction in mind (future referrals) and are in the business of real estate long term (pay attention to paperwork) you have no idea how many agents burn their clients because they (you have to be in business to observe that) or their company could care less about paperwork (filling them correctly, making sure client understand what is being signed, and knowing the necessary paperwork demanded by law)

[kaos60]

not to mention about 70% of agents make 50% of what the company makes.In your case at 5% an agent would make $3750 before taxes.

[kaos60]

did a little research for you (took 10 minutes to pull it off mls)
I have checked severna park listings on mls:
223 houses for sale total
215 of them detached
3 condos
rest are townhouse and other

the least expensive house :$279.900
second: $320.000
third: $335.000

out of 223:
3 houses offer 2% to buyer agent (two listed at $499.000 and one at $495.000)
3 houses offer 2.25% to buyer agent (one is listed at $11,500,000 and other at $1,399,900 and the third listed at $434,900)

conclusion:
1.commissions are built in to sales price
2.finding somebody who will do the whole sale at both ends for 3% is impossible.
3.companies themselves force minimum commission stardarts for agents to charge
4.please dont see agents as evil creatures, it is the companies who is giving me a phone with an extention charging me 50 % and spending the money on self promotion on tv and all other media advertisings.
5.sometimes the slick deals are not the best deals.It is the excitement you get out of, but it is often paid by headaches and stress.

all the best luck to you.

[Photinee]

I'm not writing this to be negative. Honestly though, if you are selling a house and are listing it at 100,000 more than you bought it for, you don't necessarily deserve anything. You would if you put 100,000 worth of improvements in the place maybe. The market dictates how much you are going to get out of your "investment". Did you do anything to deserve all that potential profit? I'm assuming you had the good fortune to buy when prices are lower? If so, good for you. I was lucky in this area as well when I bought six years ago. If you bought at a higher price and are now trying to hold onto as much profit as you can by shortchanging a buyer's agent, you are not so lucky and will be sorely surprised at how little traffic you will get when buyers rightly feel that they should wait for lower prices. If the market is slower and more competitive for sellers like it is now then assuming that you're going to have no problem, if you were going to sell, is foolhardy at best. In a market with tons of eager buyers and sellers all waiting for the appreciation of their properties to continue upward, then buyers have to compete for anything they can get. Things are reversed now, with people less willing to become buyers and less people being able to qualify for some of the new "fancy" mortgages that lull potential buyers into a false sense of security. There are also way more homes for sale due to foreclosure and widespread panic that as a seller it is time to get out or else be stuck for the long haul.

[kaos60]

I think Photinee did a good job decsribing what is happening in the market place now. And without a doubt I can confirm as a realtor less and less people are able to qualify with less and less purchasing power.Collapse of a mortgage segment was a wake up call as well for a lot of buyers that they should think twice before signing the mortgage papers for an adjustable or a creative program.The lenders are taking extra steps because of the upcoming foreclosure season.it is a cycle and we are close to the buttom, may take about 3 years or more for people to have double digit appreciation on a house they simply live in and stand still as far as improvements.I am really starting to like this forum I signed up couple days ago It is a great local network

[Njrover0216]

Originally Posted by Photinee

I'm not writing this to be negative. Honestly though, if you are selling a house and are listing it at 100,000 more than you bought it for, you don't necessarily deserve anything. You would if you put 100,000 worth of improvements in the place maybe. The market dictates how much you are going to get out of your "investment". Did you do anything to deserve all that potential profit? I'm assuming you had the good fortune to buy when prices are lower? If so, good for you. I was lucky in this area as well when I bought six years ago. If you bought at a higher price and are now trying to hold onto as much profit as you can by shortchanging a buyer's agent, you are not so lucky and will be sorely surprised at how little traffic you will get when buyers rightly feel that they should wait for lower prices. If the market is slower and more competitive for sellers like it is now then assuming that you're going to have no problem, if you were going to sell, is foolhardy at best. In a market with tons of eager buyers and sellers all waiting for the appreciation of their properties to continue upward, then buyers have to compete for anything they can get. Things are reversed now, with people less willing to become buyers and less people being able to qualify for some of the new "fancy" mortgages that lull potential buyers into a false sense of security. There are also way more homes for sale due to foreclosure and widespread panic that as a seller it is time to get out or else be stuck for the long haul.

Actually I was lucky to buy when the market was lower, however, I was dumb and bought a townhome/duplex, for 30,000 more I could have had a single family home, but I decided to go small and make sure I liked the area before buying a single family home. Before I knew it homes were skyrocketing here. In order for me to ever have a single family home I have to walk away with a huge profit from this home. Being a cop and a teacher we do not make what it costs to live here. I am currently staying at home due to personal reasons until my son goes into school. Therefore, I would have to sell my home and take as much as I possibly could with me. I could put my home up for 330K and walk away with 330, easily. I could probably put it up for 350K and sit and wait and eventually get it. The same house around the corner sold for 380K. However, I am going to sit and wait and til spring and see if I really want to buy here again or go Carroll county or queen annes.

[keeperk]

I find these posts amusing, in a positive light, and very informative.
I stumbled across this message board a couple of days ago.

My interest is from an agents stand point, of why don't you try to sell it yourself? Pay a lawyer to do the paperwork?

[kevinm]

It does not matter to a buyer how much you need in profit. Your house is only worth as much as a buyer is willing to pay. You should determine your minimum profit and allow the realtor to market the property at whatever price is needed to get the 6%. (sales price - mortgage - commisson = profit)

[ReefAreCoolToo]

since the market inflated into crazy level..and everyone seems to hold off or could not get a loan...there are abundant home out there.
Buyer can easily check how much you paid x year at $y and calculate how much profit you are taking in and make a ball park figure with a niffty 6% appreciation rate each year + 3% (if you do any improvement).

People like you wanted max profit without payingout


for instance..someone bought their house in 2004 for $120k. They are trying to sell it of for $220k in 2007....where is the logic of that....goes up 100k within 3 years...